Collective Bargaining

Collective bargaining is a forum for reaching an agreement between the employer and the union after negotiation and bargaining. As such, collective bargaining provides for resolution of disputes through compromises or concessions made by the parties. The power equation between the employer and the union is critical in collective bargaining from the beginning to the end of dispute deliberation.

DEFINATION : Collective bargaining is defined as the process through which representative of management and the unions meet to negotiate a labor agreement. Collective bargaining is a process established to improve industrial relation by resolving industrial dispute through collective negotiation. It is also viewed as a mechanism for regulating the relationship between employer and employees. Collective bargaining at the industry level is an important form of negotiation forum between employer and employee in public sector organization, but the privet sector organization of late prefer organization- level or workplace bargaining.

 According to (ILO) international labour organization has recognized collective bargaining serves the purpose of protecting the fundamental right of workers, providing them social protection and promoting sound industrial relation. Collective bargaining normally covers issues such as working hours, wages, benefits, working condition, workload, and the rules of the workplace. When the collective bargaining process is successful, the employers and the employees union reach an agreement and ratify it later. This agreement is usually in force for a specific period like three or five years.

 Collective bargaining process :

Step 1: deciding the negotiation team Step 2: planning for negotiation Step 3: Presentation of demands Step 4: bargaining over the demands Step 5: winding up the bargaining

STEP 1 : Deciding the negotiation team: This is a first step in a bargaining process is the determination of the negotiation team for the collective bargaining process. The employers and the trade unions both must choose their respective negotiation teams and chief negotiators to conduct the collective negotiation. Each party must also have the power to remove or replace any member of the negotiating teams. The negotiators must be knowledge and loyal person with adequate negotiation skill.

STEP 2 : planning for negotiation The next step in the bargaining process is doing ones homework properly.

 This is applicable both to the employers and the trade unions. The management must have a solid database to support its bargaining position. Its must gather sufficient data about the existing compensation packages and other benefits.it must also have information about the industry pay averages and the pay scale of the rival companies in the same industry. It must also have computed the probable labour cost for different compensation packages. As for trade union, it must gather comprehensive information about the needs and desire of the employees. It must clearly know what the employee expect from the next collective bargaining.

Step 3 : Presentation of demands

Once the framework and the ground rule for the bargaining process is agreed upon by the parties, each party would make a detailed presentation about its demands and the issues concerning them. The issues may relate to wages and salary, incentive, paid holidays, bonus payment, profit-sharing plan, sick leave, pension plan, promotion, lay-off, transfer, work assignment, Etc... Step 4: bargaining over the demands:

 This is the most crucial stage in a collective bargaining process. Each party would adopt strategies to settle the issues in its favor. During the time of bargaining, the negotiating team must consult regularly with, report to and take instruction from the higher authorities regarding the development, revised strategies, and response to the offer made by the other party. When the negotiation breaks down or reaches a stalemate, the negotiators may offer alternative proposal for reviving the negotiation in the consultation with their top level authorities.

Step 5: winding up the bargaining:

When the bargaining ends with a tentative agreement between the employers and the unions, it becomes the responsibility of each party to get the agreement ratified. The negotiators representing the management would seek the employees approval for signing the formal agreement. Once the agreement is signed by all the parties, it is given effect either from the date upon by the negotiators during the bargaining or after the expiry of the existing agreement.